The Swiss Franc

The big news of the day is that the Swiss National Bank (SNB) unpegged their currency. I know that you trust me to help you understand these extremely important stories. The Swiss Franc (CHF on the currency exchange. CHF looks like a better symbol for Cambodian money.) was pegged to the Euro at a set price. Basically the Swiss Franc moved in accordance with the Euro. This is like a little brother copycatting the older. At first it is cute, but then it is annoying and the little brother gets punched in the face. The Swiss Franc decided that the Euro might face some devaluation in the eyes of traders because of possible bailouts. Since that would hurt their currency, they decide to unpeg. The Swiss stopped mimicking before they got punched in the face. The Swiss Franc is now openly traded and the currency is worth a lot more money. Switzerland got their bar mitzvah money. This hurt companies who export out of Switzerland because all of their products became a lot more expensive. The little brother is getting into a fight and took a swift kick to the groin. The overall outcome is that Switzerland has saved its currency from getting hurt by others actions and exporting companies will face a period where they need to adjust to the price of their currency. The little brother is now a wrestler and needs to adjust in order to get out of the hold his opponent has him in (I know that isn’t funny, but it is a great analogy so tough). In summation, the Swiss Franc has a funny abbreviation, this will be irrelevant in 24 hours, and Ballers will Ball.